Suchergebnisse

The purpose of this paper is to consider certain consequences of large post-crisis capital flows in advanced economies. Specifically, I offer an examination of the Swiss response to large capital inflows during the early stages of the global financial crisis. Why did the Swiss National Bank (SNB) intervene in the foreign exchange market and introduce an exchange rate floor? Why did the SNB gamble with its highly valued anti-inflationary reputation in attempting to stem the appreciation of the Swiss franc? To answer these questions, this paper suggests a broader and more complete explanation than one that focuses solely on the configuration of domestic interests. Specifically, the paper argues that a thorough explanation of the SNB's response requires accounting for the changing monetary paradigm of the central banking community. This emerging monetary paradigm influenced the SNB's policy decisions by making the SNB particularly sensitive to financial stability risks and by providing it with the policy space to experiment with (macroprudential) tools to manage these risks. Adapted from the source document.

The Mexican economy has undergone an important transformation that started at the end of the 1980s. There is a greater weight of private investment and some companies are making major investments in certain manufacturing activities. The composition of foreign trade now rests mostly on manufacturing. Multinational companies, which have acquired assets in the country or have made new investments, are mainly interested in exports. However, the growth of manufactured exports has occurred without a sustained real gross domestic product (GDP) growth, let alone GDP per capita. There are no signs of an increase in technical development and there is evidence of slower growth in equipment, machines, and tools used to manufacture the goods being exported. Based on Celso Furtado's analysis, it is possible to argue that what happened in Mexico is a breakthrough in the growth of manufacturing exports, a growth that creates neither conditions for industrial development nor positive changes in the composition of employment. It has created an export platform concentrated in small group activities, mostly due to the arrival of subsidiaries of foreign firms in the country. Industry is not the engine of sustained growth and even less an expansion of productive activity that encourages the emergence of new branches and the multiplication of exchanges among the various sectors of the economy. One witnesses weak growth and a tendency toward stagnation. Adapted from the source document.

The aim of this article is to develop a Chartalist critique of the prevailing economic theories that have informed the original design of the Eurosystem. In order to understand the structural dynamics of the current crisis, it is necessary to examine the longstanding internal contradictions that the system has inherited from its inception under the Maastricht Treaty of 1992 and the neoliberal strategy, which has governed its evolution. In its bare essentials, the euro lacks the backing of a coherent sovereign power. More specifically, the article argues that this national/supranational dichotomy prevents a more unified response to the current debt crises engulfing the peripheral countries of the Eurozone. Adapted from the source document.